ASIA CREDIT CLOSE: Spreads narrow amid thin holiday volumes
HONG KONG, Oct 15 (IFR) - Asian credit spreads narrowed on Tuesday on expectation that a deal would be reached soon to raise the US debt ceiling and reopen the government.
However, trading was thin due to a holiday in Singapore just after a Hong Kong started the week after a day off Monday.
The iTraxx IG Index is looking to close out at 136bp/138b from yesterday's 140bp/142bp.
Sinopec's bonds were 1bp-3bp tighter from Friday's closing. Last week, the Chinese oil major had issued three tranches of bonds - 2.5% 5-year at 120bp over Treasuries, 4.375% 10-year at a spread of 180bp, and 5.375% 30-year at 165bp over.
ICBC's new Tier 2 bonds, priced two weeks back, were still trading wider to reoffer at T+335bp/325bp after pricing at T+315bp.
Korean bonds saw some demand with some trades seen in the paper of Kexim and KDB.
The Kexim 2022s were at T+108bp/T+95bp while its 2018s were at T+105bp/T+95bp. The KDB 2022s were at T+115bp/105bp, while the 2019s were at 115bp/145bp.
Bankers expect the pace of primary supply to resume tomorrow when the markets come back with full force after the break.
Aluminum Corporation of China, or Chalco, said today it would meet investors in Singapore and Hong Kong starting tomorrow in relation to a USD Reg S perp.